DXY traded at the highest level since end of March

Ben Ridgeway Saxo Bank

Economic Data of the Day (Singapore Time – GMT + 8)

07.00am: KRW – Industrial Production SA MoM (Act. -1.3%, Exp. -0.3%), YoY (Act. -2.8%, Prev. -1.3%)

07.50am: JPY – Industrial Production MoM (Act. 0.3%, Exp. -1.5%), YoY (Act. -3.5%, Exp. -5.0%)

02.00pm: EUR – Germany Retail Sales MoM (Exp. 0.9%, Prev. -1.4%); YoY (Exp. 1.7%, Prev. 0.7%)

02.45pm: EUR – France PPI MoM (Prev. 0.3%), YoY (-4.0%)

02.45pm: EUR – France CPI MoM (Exp. 0.3%, Prev. 0.1%), YoY (Exp. -0.1%, Prev. -0.2%)

05.00pm: EUR – Eurozone CPI YoY (Exp. -0.1%, Prev. -0.2%), Core CPI (Exp. 0.8%, Prev. 0.7%)

07.00pm: INR – India GDP YoY (Exp. 7.5%, Prev. 7.3%)

08.30pm: CAD –GDP MoM (Exp. -0.1%, Prev. -0.1%), YoY (Exp. 1.4%, Prev. 1.5%)

08.30pm: USD – PCE Deflator MoM (Exp. 0.3%, Prev. 0.1%), YoY (Exp. 1.1%, Prev. 0.8%)

08.30pm: USD – PCE Core MoM (Exp. 0.2%, Prev. 0.1%), YoY (Exp. 1.6%, Prev. 1.6%)

Speeches

03.00pm: KRW – Bank of Korea Policy Meeting Minutes

04.30pm: EUR – Bank of Italy's Governor Ignazio Visco Gives Annual Speech

Overnight News

SOUTH KOREA: Industrial Production falls 2.8% (Exp. -1.3%). The South Korean government’s push to restructure debt-laden companies is set to cost tens of thousands of workers their jobs in an economy where social security is limited and a rigid labor market reduces the likelihood of getting rehired in a full-time position.

Foreign Exchange

The USD came off slightly yesterday on a very quiet market with holidays in the UK and US. The DXY traded at the highest level since end of March and trades at the 100d MA which is the main resistance. After testing the 50d MA and the Ichimoku cloud the past few days, USDJPY rallied hard after Yellen’s speech on Friday and is not at the top of the cloud which should be the initial resistance.

AUD is still settling below the 200d MA that is the big resistance and should find good offers there USD/Asia has found good buying interest since end of last week and should remain bid with the hike in the US coming soon.

Author

Ben Ridgeway

Saxo Bank

Ben Ridgeway works on the private client trading desk at Saxo Capital Markets (UK) Ltd. in Canary Wharf, London. As a sales trader, he executed trades across a wide range of asset classes in his current role but has a focus on FX and FX Options.

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